Minimize risk and maximize profits with convertible arbitrage
Convertible arbitrage involves purchasing a portfolio of
convertible securities-generally convertible bonds-and hedging a
portion of the equity risk by selling short the underlying common
stock. This increasingly popular strategy, which is especially
useful during times of market volatility, allows individuals to
increase their returns while decreasing their risks. Convertible
Arbitrage offers a thorough explanation of this unique investment
strategy. Filled with in-depth insights from an expert in the
field, this comprehensive guide explores a wide range of
convertible topics. Readers will be introduced to a variety of
models for convertible analysis, "the Greeks," as well as the full
range of hedges, including titled and leveraged hedges, as well as
swaps, nontraditional hedges, and option hedging. They will also
gain a firm understanding of alternative convertible structures,
the use of foreign convertibles in hedging, risk management at the
portfolio level, and trading and hedging risks. Convertible
Arbitrage eliminates any confusion by clearly differentiating
convertible arbitrage strategy from other hedging techniques such
as long-short equity, merger and acquisition arbitrage, and
fixed-income arbitrage.
Nick Calamos (Naperville, IL) oversees research and portfolio
management for Calamos Asset Management, Inc. Since 1983 his
experience has centered on convertible securities investment. He
received his undergraduate degree in economics from Southern
Illinois University and an MS in finance from Northern Illinois
University.
